And like, I dunno....if someone thinks my response to someone else is socially inappropriate, like "wrong time, wrong place," they could at least just say "that's not a socially appropriate response" not "you're overreacting."
If you want to tell someone that the fact that they don't ignore other people's unkindness makes you uncomfortable, you could just say that it makes you uncomfortable. You don't have to tell the person that they misunderstood if they didn't misunderstand. Ya know?